News

Northern Powerhouse Investment Fund invests £31m in first year

8 March 2018

Over 200 investments completed across 10 LEP areas

Combined value of investments totalling £31 million

An additional £32 million invested in local small businesses from the private sector

The Northern Powerhouse Investment Fund (NPIF) has invested £31 million in 207 Northern-based SMEs during the first 12 months of operation, as the Fund continues to provide a boost to the Northern economy.

The £400m Fund, which is supported by the European Regional Development Fund, HM Government and the European Investment Bank, was launched by the British Business Bank as a key part of the government’s ‘Northern Powerhouse’ vision to back innovative, fast growing small businesses.

Over the last 12 months, NPIF has worked with the 10 Local Enterprise Partnerships (LEPs), Combined Authorities, as well as local accountants, fund managers and banks, to provide a mix of debt and equity capital to SMEs in the North West, Yorkshire & Humber and Tees Valley regions.

Appointed fund managers have completed deals between £25k to £2m into businesses across a range of industries, including technology and advanced manufacturing and life sciences. Investments have been completed across all 10 LEP areas and the Fund has also managed to leverage an additional £32m in private sector finance for local businesses.

Recent NPIF investments include:

A £150,000 loan from NPIF – FW Capital Debt Finance, managed by FW Capital, into Lancashire-based Inleaf, which provides plant displays and living wall installations to offices, hotels, car dealerships and public spaces.

A £80,000 microfinance loan from NPIF – BFS & MSIF Microfinance, into Liverpool-based Inovus Medical which manufactures medical and training products used by doctors and surgeons across the globe, delivered by the Business Enterprise Fund (BEF).

A £25,000 microfinance loan from NPIF – BEF & FFE Microfinance and delivered by the Business Enterprise Fund (BEF), into York-based Revolution Waves, a zero sugar, low calorie drinks manufacturer whose clients include major retailers and schools across the UK.

The additional source of funding has enabled these businesses to meet growth ambitions, launch new products, expand into new markets, and invest in new infrastructure.

Keith Morgan, CEO of British Business Bank, said: “It is fantastic to see NPIF making a genuine impact to businesses in the North of England. The number of significant milestones achieved over the last 12 months, demonstrates the success of the regional funding models and the importance of people on the ground ensuring vital funds are efficiently invested in high-growth businesses.

“I am thoroughly impressed by the collaborative effort demonstrated by our appointed fund managers and the participating LEPs, and I would like to thank them all for helping to deliver a successful model that will now be rolled out in the Midlands as the Midlands Engine Investment Fund (MEIF).”

Jake Berry, Northern Powerhouse Minister, said: “What the Northern Powerhouse Investment Fund has achieved in such a short space of time is truly remarkable. The Northern Powerhouse Investment Fund has given businesses across a wide range of industries the funds they need to innovate and grow – whether that be expanding into emerging markets, investing in research and development or hiring new staff to help their company flourish.”

Roger Marsh, Chairman of the NPIF SOB and Chair of the Leeds City Region Enterprise Partnership (LEP), said: “I am delighted to hear that the Northern Powerhouse Investment Fund has reached this significant investment milestone in just 12 months. Supporting growing businesses is at the heart of the LEP and West Yorkshire Combined Authority’s work to transform the region’s economy and investment through the NPIF helps to accelerate this growth.”

Andy Burnham, Mayor of Greater Manchester, said: “Access to finance is vital to help small businesses flourish and it’s fantastic to see regional funds such as NPIF making an impact in Greater Manchester and beyond. I have been impressed with the calibre of businesses that have come forward to secure funding and it shows that there’s appetite from entrepreneurs across the region to look beyond traditional means of finance to facilitate growth.”

The Northern Powerhouse Investment Fund provides microloans, debt and equity investments, ranging from £25,000 to £2m to help a range of small and medium sized businesses to start up, scale up or stay ahead. The Northern Powerhouse Investment Fund is delivered by The British Business Bank.

The Northern Powerhouse Investment Fund project is supported financially by the European Union using funding from the European Regional Development Fund (ERDF) as part of the European Structural and Investment Funds Growth Programme 2014-2020 and the European Investment Bank.

The Northern Powerhouse Investment Fund will invest in Microfinance, Business Loans and Equity Finance sub-funds which will offer financing ranging from £25,000 to £2m, specifically to help small and medium sized businesses secure the funding they need for growth and development.

The Northern Powerhouse Investment Fund is operated by British Business Financial Services Limited, wholly owned by British Business Bank, the UK’s national economic development bank. Established in November 2014, its mission is to make finance markets for smaller businesses work more effectively, enabling those businesses to prosper, grow and build UK economic activity,

The Northern Powerhouse Investment Fund is supported by the European Regional Development Fund, the European Investment Bank, the Department for Business, Energy and Industrial Strategy and British Business Finance Limited, a British Business Bank group company.

The project is receiving up to £140,359,192 of funding from the England European Regional Development Fund as part of the European Structural and Investment Funds Growth Programme 2014-2020. The Department for Communities and Local Government is the Managing Authority for European Regional Development Fund. Established by the European Union, the European Regional Development Fund helps local areas stimulate their economic development by investing in projects which will support innovation, businesses, create jobs and local community regenerations. For more information visit https://www.gov.uk/european-growth-funding.

The funds in which Northern Powerhouse Investment Fund invests are open to businesses with material operations, or planning to open material operations, in, Yorkshire and the Humber, the North West and Tees Valley.

The British Business Bank has published the Business Finance Guide (in partnership with the ICAEW, and a further 21 business and finance organisations). The guide, which impartially sets out the range finance options available to businesses and provides links to support available at a regional level, is available at thebusinessfinanceguide.co.uk/bbb

British Business Bank plc is a limited company registered in England and Wales, registration number 08616013, registered office at Foundry House, 3 Millsands, Sheffield, S3 8NH. As the holding company of the group operating under the trading name of British Business Bank, it is a development bank wholly owned by HM Government which is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). The British Business Bank operates under its own brand name through a number of subsidiaries, one of which is authorised and regulated by the FCA.

British Business Financial Services Limited is a wholly owned subsidiary of British Business Bank plc, registered in England and Wales, registration number 09174621, registered office at Foundry House, 3 Millsands, Sheffield, S3 8NH. It is not authorised or regulated by the PRA or FCA.

More information, including a legal structure chart for British Business Bank plc and its subsidiaries, can be found on the British Business Bank website

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British Business Bank plc is the holding company of the group operating under the trading name of British Business Bank. It is a development bank wholly owned by HM Government which is not authorised or regulated by the Prudential Regulation Authority (PRA) or the Financial Conduct Authority (FCA). The British Business Bank operates under its own trading name through a number of subsidiaries, one of which is authorised and regulated by the FCA. British Business Bank plc and its subsidiary entities are not banking institutions and do not operate as such. Accordingly, none of the British Business Bank group of companies takes deposits or offers banking services.

A complete legal structure chart for British Business Bank plc can be found on this website.